Table Shave and Underwriting Credits for Term Life Insurance
Life insurance underwriting involves many different moving parts. You are assessed on many health and lifestyle characteristics so that the underwriters can determine your health class rating. In many cases, there are applicants who have minor to moderate health issues but are otherwise healthy. For instance, if you are overweight, your build might put you in a ‘Standard’ health class. But what if all your other health and lifestyle characteristics fall into the ‘Preferred’ health class? In this case, some life insurance companies will offer health and lifestyle credits that will push you up to a ‘Preferred’ or even ‘Preferred Best’ health class, saving you thousands over the life of your policy.
Here are some of the programs from various life insurance companies that allow for table shave and underwriting credits.
United of Omaha – Fit Test Program
United of Omaha offers the Fit Test Program which gives applicants the opportunity to improve their health rating up to 2 additional table ratings if they have positive lifestyle or medical characteristics. This could provide a tremendous savings opportunity for those who have a minor to moderate health issue but are otherwise healthy. For instance, if you have a health issue that makes you a ‘Table 4’ rating, United of Omaha will credit you up to 2 table credits if you meet 5 lifestyle or medical characteristics. Here are some of the characteristics that you would have to meet to qualify for a table credit:
Lifestyle Characteristics
- Regular preventative medical care and compliant follow-up?
- Lifetime non-smoker?
- Income > $100,000 or net worth > $1,000,000 or a college degree?
- Preferred or better driving record?
Medical Characteristics
- Great family history – no deaths (parents/siblings) from any disease prior to age 70?
- Cholesterol/HDL ratio under 5.0?
- A1c test < 5.7?
- Negative cardiac testing: GXT, non-imaged or imaged (stress echo, perfusion study), echocardiogram, EBCT or angiography?
- Optimal blood pressure control-treated or untreated of 130/80?
- Preferred or better build, ages 18- 60. Standard plus or better build, ages 61-75?
If you meet a total of 5 of the characteristics listed above, you could qualify for 2 table credits.
Nationwide – Wellness Credits
Nationwide offers wellness credits for certain applicants. Underwriters will automatically review every application for wellness credits eligibility. An insured may be credited up to one table, including from ‘Preferred’ to ‘Preferred Plus’, and wellness credits can improve substandard classifications. There are some restrictions on preexisting conditions such as coronary artery disease, diabetes, alcohol or drug risks to name a few. Wellness credits are available for insureds with favorable build/BMI, blood pressure readings, cardiac testing, family history and lab results.
Met Life – MetEdge
If you are rated ‘Table B’ or ‘Table C’, with one or 2 select health impairments, Met Life will automatically evaluate your application to see if your offer can be improved. Met Life has improved offers on nearly 14,000 cases using Met Edge (as of 2013). If you have certain medical or non-medical impairments, you could qualify for a credit. Here are some of the impairments that are included:
Abnormal Lab Results
- Abnormal Blood Sugar
- Abnormal Triglyceride
- Abnormal Cholesterol/HDL
- Abnormal liver Enzymes
Non-Medical Impairments
- Foreign Travel
- Motor Vehicle Violations
- Scuba Diving
Weight Related
- Bariatric Surgery
- Body Mass Index
- Build
Other Impairments
- Asthma
- Blood Pressure
- Epilepsy
- Rheumatoid Arthritis
- Sleep Apnea
- Type II Diabetes
If you have any of these impairments but you have favorable health and lifestyle characteristics, your underwriter could agree to give you a better rating.
AXA – Smart Total Evaluation Program (S.T.E.P)
AXA’s S.T.E.P program allows one class rating improvement with favorable risk factors and a healthy lifestyle for cases rated up to ‘Table C’. Underwriters will consider such factors such as:
- History of Non-Tobacco Use
- Aerobic Exercise
- Favorable Family History
- Favorable Insurance Lab Findings
- Prescription Usage
Just one class rating improvement can save you up to several hundred dollars per year on your coverage.
American National – Eagle Advantage
Clients who are rated ‘Table 2’ due to single impairments and some combination impairments could be eligible for ‘Standard’ rates. American National will automatically review your application to see if you qualify. Here are some of the medical impairments that may be moved from ‘Table 2’ to ‘Standard’:
- Anxiety
- Atrial Fibrillation
- Blood Pressure
- Build
- Cholesterol
- Crohn’s Disease
- Depression
- Sleep Apnea
- Type 2 Diabetes
- And more
The dollar difference between a ‘Table 2’ and ‘Standard’ rate is substantial. If you have minor to moderate medical conditions, a crediting program could save you thousands over the life if your policy.
AIG – Better Choice Preferred
Applicants with certain medical conditions that were previously classified at ‘Standard’ may now be eligible for a ‘Preferred’ classification. They must meet all criteria for ‘Preferred’ class. Here are some of the conditions that may apply for ‘Preferred’ health class.
- Asthma
- Anxiety/Depression
- Crohn’s Disease
- Elevated Liver Function Tests
- Treated Sleep Apnea
- Ulcerative Colitis
More Underwriting Credit Options if You Purchase Permanent Coverage
The companies listed above offer table shave and underwriting credits for term and permanent coverage. If you are interested in permanent coverage options only such as universal life, other companies like Accordia Life, John Hancock, Lincoln Financial Group and Principal offer credit programs on their permanent coverage only.
Table Shave and Underwriting Credits for Term Life Insurance Can Save You Thousands
If you have a minor or moderate health issue, but are otherwise healthy, you could lower your rates through underwriting credits. Just two health class credits could save you thousands over the life of your policy. Using an independent agency like ours in this case will allow you to shop around and find the best fit for your situation. If you would like to learn more about these types of programs, we can help. We have access to over 40 life insurance companies and we can match you with the best company for your needs.
About Us
Archstone Insurance Services, LLC is an independent agency that shops over 40 of the top life insurance carriers to provide huge savings on life insurance coverage for our clients. We are happy to answer any questions you might have about any of the insurance products we offer, your planning needs or your existing coverage. Feel free to call us directly at (888) 687-9444 or email us at info@archstoneagency.com.
